Dow, S&P 500, Nasdaq tank as inflation fears, tariffs spark tech sell-off

The current market decline has prompted one other Wall Road strategist to revise down its S&P 500 forecast for 2025.

On Friday, UBS World Wealth Administration head of US equities David Lefkowitz predicted earnings would are available weaker than beforehand anticipated, prompting a trim to the agency’s year-end worth goal on the broad primarily based index to six,400 from 6,600.

“We nonetheless consider that US shares can get well and publish features for the 12 months. Nonetheless, current financial weak spot and our expectation that tariffs can be on the greater finish of our base case prompts us to decrease our 2025 S&P 500 EPS estimate from USD 270 (8% development) to USD 265 (6% development),” mentioned Lefkowitz in a observe.

“We due to this fact trim our year-end S&P 500 worth goal from 6,600 to six,400,” he added.

On Friday, the S&P 500 was buying and selling just under the 5,600 degree. The index fell into correction territory earlier this month, when it was down 10% from its February document excessive.

Regardless of a sell-off in mega cap shares, Lefkowitz nonetheless expects the market to reverse course and rise by the top of the 12 months, pushed partly by coverage readability, a pivot to pro-growth coverage initiatives, and AI funding.

UBS’s revision comes on the heels of downwardly revised forecast from Goldman Sachs (GS) and RBC Capital Markets.

This week Barclays (BCS) slashed its forecast on the benchmark index to five,900 from 6,600, primarily based on expectations for decrease earnings.